On January 1, 2023, Grand Teton Corporation issues $450,000, 5-year, 8% bonds at 96. Interest is paid semiannually on January 1 and July 1. Grand Teton uses the straight-line method of amortization. The company's fiscal year ends on December 31. The necessary journal entry on July 1, 2023 is:

debit Interest Expense for $19,800; credit Discount on Bonds Payable for $1,800 and credit Cash for

debit Cash for $18,000; debit Discount on Bonds Payable for $1,800 and credit Interest Expense for

$19,800

O debit Interest Expenge for $18,000; credit Cash for $18,000

debit Interest Expense for $19,800 and debit Premium on Bonds Payable for $1,800; credit Cash for

$18,000